[responsive][/responsive]Digital is making gains, but direct mail still owns the charts in terms of local media revenue.
New data and forecasts from BIA/Kelsey show that, of all local media revenue channels, direct mail continues to hold the top spot. It’s followed by TV, online and radio advertising, in that order.
Even as digital’s influence grows, a good quarter of local media revenue is expected to come from direct mail by the year 2018, according to Marketing Charts staff reports.
So what’s going to change?
According to the article, “the share of local media revenues attributed to online/interactive will grow from 9.9% to 13.1%. The bigger jump, of course, will be reserved for mobile, forecast to grow all the way from just 2.2% share last year to 9.9% share in 2018.”
Given the speed at which mobile and digital media consumption is rising, the associated revenue is not keeping pace, as more dollars continue to be spent on traditional local media channels.
“Direct mail,” continues the article, “was by far the single largest local revenue driver last year, itself comprising 27.9% share of revenues….Total dollar spending (not adjusting for inflation) on direct mail will actually inch up during the forecast period, but the rate of growth will lag the overall local media sector by a significant margin.”
As marketers start to figure out the digital consumer and their behavior, it’s not surprising that more dollars will flow that way. Still, this deep into the “digital economy” we are still seeing direct mail as a significant player, now and in the near future.